Fallout from Greek crisis

Greek opposition leader Antonis Samaras on Thursday called on Prime Minister George Papandreou to resign and demanded snap elections in six weeks.

An anti-government protester stands in front of the parliament as Greek Prime Minister George Papandreou delivers a speech to socialist lawmakers from his party in Athens Thursday. (Reuters/Yannis Behrakis)

by Toronto Star on Nov 3, 2011 at 2:55 PM

Greek opposition leader Antonis Samaras on Thursday called on Prime Minister
George Papandreou to resign and demanded snap elections in six weeks.

Papandreou, who spoke to Samaras by phone earlier on Thursday,
has offered to hold talks with the conservative leader's party on its demand for
a caretaker government to lead the country until snap elections are held.

Greece's embattled prime minister says he has invited opposition conservatives
to join talks on a major European debt deal.

Greek referendum to be scrapped if political deal struck, official says. --Reuters

by Toronto Star11/3/2011 2:32:46 PM

Government spokesman Ilias Mossialos, reading from a statement, said Thursday "we are ready for a serious discussion" on the conservative opposition proposal. Prime Minister George Papandreou faces a confidence vote on his government Friday.

--Associated Press

by Toronto Star11/3/2011 2:33:41 PM

Bookmaker William Hill, known for online sports betting, is offering odds of 4/6 that Greece will cease to use the euro by the end of 2012, AFP reports.

"For the first time we are betting odds-on that the Greeks will quit the euro," said William Hill spokesman Graham Sharpe in a statement.

They offered odds of 11/10 that embattled country will still be using the currency on Dec. 31, 2012.

by Toronto Star11/3/2011 2:35:37 PM

Meanwhile, the International Monetary Fund said Thursday it fully supports the European Central Bank's interest rate cut and that its aid to Greece is with the country and would continue as long as its terms were met.

"We fully support the interest rate reduction announced this morning which reflects the decrease in inflationary pressures and intensified negative outlook for the eurozone," IMF spokesman David Hawley told a news conference.

He declined to comment directly on reports that the Greek government was on the brink of collapse but said the IMF loan program was tied to the country.

"Our programs are with countries. If the authorities in any country continue to implement the program, then the fund is in a position to continue the program," Hawley said.

A demonstrator, dressed as a clown, poses between riot police officers in Cap d'Ail Thursday on the sidelines of the G20 Summit of Heads of State and Government. (BORIS HORVAT/AFP/Getty Images)

by Toronto Star11/3/2011 3:00:17 PM

The euro turned higher against the dollar in very choppy trading Thursday after Greek Prime Minister George Papandreou said the country's membership in the eurozone was never in question.

He added that opposition support for a bailout plan is "great", suggesting that Greece may stay the course and adhere to the commitments under the package.

The euro was last up 0.1 per cent at $1.37596 .

--Reuters

by Toronto Star11/3/2011 3:12:21 PM

Greek Prime Minister George Papandreou on Thursday offered to hold talks with the opposition to resolve the country's political crisis and softened his stance on a referendum on the country's vital bailout package.

In a speech to his cabinet on Thursday, Papandreou said he would assign the task of discussions with the opposition to two senior party members and praised their support of the bailout deal. If the opposition agreed to back the deal in parliament, no referendum would have to be held, he said.

"I will be glad even if we don't go to a referendum, which was never a purpose in itself. I'm glad that all this discussion has at least brought a lot of people back to their senses," he said in the text of his speech released to media.

"I will talk to (opposition leader Antonis) Samaras so that we examine the next steps on the basis of a wider consensus."

He reiterated that Greece's euro zone membership was not in question and that heading to elections immediately would entail a big risk of the country going bankrupt.

With much at stake for the United States, President Barack Obama said Thursday that European leaders must flesh out plans to resolve the region's financial crisis. His prodding at an economic summit in France came as Greek's government appeared in danger of collapse over the prime minister's surprise plan to put the Europe bailout deal to a popular vote.

Speaking alongside French President Nicolas Sarkozy after the two met privately on the sidelines of the Group of 20 summit of leading world economies, Obama said that resolving the European financial crisis is "the most important aspect of our task over the next two days."

--Associated Press

by Toronto Star11/3/2011 3:48:28 PM

Stocks rose sharply Thursday as the Greek prime minister bowed to massive political pressure to scrap a referendum on a European bailout plan. A surprise rate cut from the European Central Bank also helped boost sentiment following days of turmoil in financial markets.

In Europe, Britain's FTSE 100 was up 1.1 per cent at 5,546. France's CAC-40 rose 3 percent 3,204 while Germany's DAX was also 3 per cent higher at 6,144.

In the U.S., the Dow Jones industrial average rose 1.2 per cent, to 11,974 while the broader S&P 500 index rose 1 per cent to 1,251.

-- Associated Press

by Toronto Star11/3/2011 3:49:25 PM

A demonstrator carries the Greek national flag during a protest against tax havens and the G20 Summit in Cap D'Ail, France. (Christopher Furlong/Getty Images)

The drama Thursday in Greece sent immediate ripples throughout Europe. Premier Silvio Berlusconi's government in Italy was teetering as well after it failed to come up with a credible plan to deal with its dangerously high debts, and Portugal demanded more flexible terms for its own bailout.

--Associated Press

by Toronto Star11/3/2011 4:10:18 PM

Meanwhile in Cannes, activists are pressuring global leaders meeting for the Group of 20 summit to impose higher taxes on financial transactions in order to raise millions of dollars to fight poverty and deprivation around the world.

Groups including Oxfam, the World Wildlife Foundation and others organized events Thursday around the chic resort town of Cannes on France's Cote d'Azur to draw attention to the so-called Robin Hood tax on financial transactions.

Multibillionaire Microsoft founder Bill Gates joined the call, travelling to Cannes to urge G20 leaders to consider the tax and other innovative ways to help poor nations.

--Associated Press

by Toronto Star11/3/2011 4:18:03 PM

Papandreou is currently addressing his PASOK party in Athens. He says Greece's membership in the EU is a stake...the country will never raise euro membership in a referendum.

by Toronto Star11/3/2011 4:23:57 PM

The Greek PM says his government is bearing a cross and "we are being stoned."

by Toronto Star11/3/2011 4:29:27 PM

Meanwhile, a South African government spokesman has called on Europe to "get its act together" and create a financial rescue plan before other governments can decide how to help.

Mac Maharaj, a spokesman for President Jacob Zuma, said Thursday that South Africa hopes Europe fleshes out its plans during the G20 meeting of developed and developing countries under way this week. Maharaj said his government believes "the solution is overdue."

South Africa is among major developing countries that have promised to support Europe's efforts to revive economic growth but say they want to see details before deciding how to contribute.

Speaking to his ministers, Papandreou said his proposal to hold a referendum "has at least brought many people toward a rational view" of Greece's dire economic situation. Several Greek lawmakers had called for a coalition unity government to approve the bailout package without a referendum, but Papandreou said stepping down would make things worse.

"Elections as a solution, today and at this moment, would mean a much greater danger of bankruptcy and of course exit from the euro," Papandreou said.

--Associated Press

by Toronto Star11/3/2011 4:42:11 PM

An anti-G20 demonstrator sits in front of French police during an action against globalization in Nice, southeastern France, Thursday. (Reuters/Eric Gaillard)

by Toronto Star11/3/2011 4:45:11 PM

European shares rose strongly on today, boosted by the European Central Bank cutting interest rates and optimism that Greece will scrap plans for a referendum on its bailout package.

The FTSEurofirst 300 index of top European shares rose 2 per cent to a provisional close of 991.32 points, after falling by as much as 1.6 per cent in early trade.

"The ECB decision is more important than any of the political decisions taken today," said Andrew Milligan, head of global strategy at Standard Life Investments, part of the Standard Life Group, which administers 196.8 billion ($315 billion U.S.) pounds of assets.

--Reuters

by Toronto Star11/3/2011 4:47:31 PM

So my fellow Greek-Minnesotan is not resigning. He's also giving up the referendum but not before forcing hand of opposition.

Antonis Samaras said Prime Minister George Papandreou should resign. --Reuters

by Toronto Star11/3/2011 6:06:18 PM

Papandreou, who spoke to Samaras by phone earlier on Thursday, has offered to hold talks with the conservative leader's party on its demand for a caretaker government to lead the country until snap elections are held. --Reuters

by Toronto Star11/3/2011 6:08:23 PM

Wow, Samaras just lied that Papandreou told Europeans that Greeks wanted out of the euro. Talented bully, that guy.

Greek Prime Minister George Papandreou is surrounded by socialist lawmakers and news photographers before a speech to members of parliament from his Socialist party in Athens Thursday. (Reuters/Panagiotis Tzamaros)

Meanwhile, French President Nicolas Sarkozy says European leaders cannot accept the "explosion" of the euro and cautiously welcomed Greece's decision to scrap a referendum on a hard-fought European bailout plan.

Sarkozy said European leaders will meet again Thursday night to try to work out ways to stem Europe's debt crisis.

Speaking to reporters at a summit of G20 leading world economies Thursday, Sarkozy said "we cannot accept the explosion of the euro, which would mean the explosion of Europe."

His comments came as Prime Minister George Papandreou fights for survival after his plan for a referendum on the bailout triggered an uproar at home and abroad.

--Reuters

by Toronto Star11/3/2011 6:28:32 PM

Antonis Samaras' statements Thursday came amid an intense political crisis in Greece, after Prime Minister George Papandreou shocked the country and European leaders earlier this week by saying he wanted to put a hard-fought new European debt deal to a popular vote.

Samaras did not indicate whether he would vote in favour of the deal when it comes before parliament. But he stressed that he had said from the start that the latest agreement was "unavoidable."--Associated Press

In Cannes, a European official says senior officials from the eurozone will meet again Thursday night on the sidelines of a summit of the Group of 20 leading economies in Cannes.

The official says the meeting will include the leaders of France, Germany, Italy and Spain as well as representatives of the ECB, the EU and the IMF. He was speaking on condition of anonymity because of the sensitivity of the issue.

The eurozone is under pressure to build up firewalls to its debt crisis, which threatens to spread from Greece to the rest of Europe.

At the same time, leaders want a clear sign that Italy will implement reforms meant to save it from financial disaster.

--Associated Press

by Toronto Star11/3/2011 6:38:43 PM

Greece's main conservative opposition leader Antonis Samaras speaks at the Greek Parliament during the session on confidence vote in Athens on Thursday. Samaras called on embattled Prime Minister George Papandreou to step down, reiterating an appeal for early elections and to resign. (LOUISA GOULIAMAKI/AFP/Getty Images)

by Toronto Star11/3/2011 6:54:10 PM

"I told Papandreou to resign and head towards the formation of a transition government ... to push towards early elections." Samaras said.